Difference Guide of: HO4 and HO6 Homeowners Insurance

Making sure you have the right kind of homeowners insurance is important for protecting your home and assets. Two common types of homeowners insurance policies are HO4 and HO6. While both provide coverage, they have distinct differences that you should be aware of when selecting the best option for your needs. This guide will explain the difference between HO4 and HO6 homeowners insurance so you can make an educated decision and select the appropriate coverage for your home.

What is HO4 Homeowners Insurance?

The HO-4 homeowner's insurance in Brownsville, also known as Tenant's Form insurance, is renters insurance by another name.

A rental policy protects a renter's belongings and liability, as well as some policies covering loss of use.

For example, if your rental property becomes uninhabitable and you cannot stay there, the insurance company will pay for your alternative lodging and food expenses.

This policy is designed similarly to renters insurance since it only protects belongings and personal liability. It does not cover the building's structure, as that is the responsibility of the landlord's insurance.

HO4 renters policies are also known as named perils policies. Your apartment and belongings will be covered if they're damaged by:

• Fire or lightning

• Windstorm or hail

• Explosion

• Riot or civil commotion

• Damage caused by aircraft

• Damage caused by vehicles

• Smoke damage

• Vandalism or malicious mischief

• Theft

• Volcanic eruption

• Falling objects

• Weight of ice, snow, or sleet

• Damage from artificial electrical current

• Water damage from home appliances

• Sudden and unexpected tearing apart, cracking, burning, or bulging of a steam or hot water heating system, air conditioning, or fire-protective sprinkler system

What is HO6 Homeowners Insurance?

HO6 homeowners insurance in Beaumont is also known as Condo Insurance or Unit-Owner's Form. It's designed for people who own condominiums or co-ops and covers their personal belongings, liability, and unit structure.

This policy is similar to an HO4 renters policy in that it covers your property and personal liability. However, it covers your unit's walls, ceilings, and floors—including plumbing, wiring, windows, and other fixtures.

Home insurance will not cover the building or your personal belongings if they are damaged by a disaster that is not covered in your policy. With an HO6, however, you can select additional coverage to protect yourself from natural disasters such as hurricanes, floods, and earthquakes.

How Much Coverage Do I Need for My HO6 Condo Policy?

Knowing where your condo association's coverage stops and where your responsibility starts. If, for example, your condo needs to be entirely rebuilt from the ground up - are you personally responsible for the following:

• Studs in: No drywall–just the studs. You get your condo back unfinished.
• The walls are up; now you can start thinking about the fun stuff — flooring, cabinets, countertops, etc.
• The original specifications of the unit are included in this insurance, so if you added any upgrades after buying it, those wouldn't be covered. For example, let's say you installed granite countertops- get those upgraded additions covered under your HO6 policy.
• Some condo insurance policies will fully restore your unit to its original condition. This is known as all-in coverage.

So always check with your insurance agent to confirm you have the right coverage for your unit.

The Differences Between an HO4 and HO6 Homeowners Policy

The main distinction between an HO4 and an HO6 policy is that the former is for rental properties while the latter was designed for condos.

Both policies work similarly and utilize the named peril guidelines when filing a claim.

An HO6 policy covers the interior walls that you own, while an HO4 policy is only for your items in a rental.

HO4 and HO6 policies are the same: they will not cover any damage or theft to items outside your condo or rental, such as common areas in an apartment complex like a gym or pool.

So before purchasing an HO4 or HO6 policy, ensure you understand what's included and excluded in the coverage and ask for homeowners insurance quotes. This will help ensure you have the proper range for your home and belongings. Complete coverage means you can rest easy knowing that you're fully protected in an accident or disaster.

Related Reads: Homeowners Insurance: Insure Vacant, Unoccupied, and Seasonal Home.

Making the Smart Choice: HO4 vs. HO6

Your property type depends on whether you need an HO4 or an HO6 policy. For example, if renting an apartment or house, look for an HO4 policy. However, if you own a condo or co-op, then an HO6 policy is necessary.

HO4 and HO6 policies can provide peace of mind in an accident or disaster. Still, it's important to compare homeowners insurance quotes and find the best policy for your situation. Read through the policy's details and ensure that it covers all your belongings and liabilities.

So if you need an HO4 or an HO6 policy, evaluate your needs and find the right coverage. With the right policy, you'll have the protection and peace of mind that your home and belongings are secure.